Gold Gains in Asia, Set for Monthly Rise, as Dollar Declines
Last Updated on Tuesday, 30 November 1999 05:00
Friday, 31 July 2009 10:17
Gold rose for a second day, set for a monthly gain, as the dollar declined against major currencies, boosting the metal’s appeal as an alternative investment. Bullion has advanced this month as the dollar has dropped against the euro as better-than-estimated results from companies including Sony Corp. and Motorola Inc. helped drive U.S. and Japanese stock gauges to the highest this year. Gold tends to rise as the dollar weakens.
“Gold’s moves are pretty much driven by the dollar,” said Hwang Il Doo, a trader with KEB Futures Co. in Seoul. “A pull back from $950 is also triggering some buying of the metal.” Gold for immediate delivery rose 0.3 percent to $937.10 an ounce at 10:45 a.m. in Singapore. The metal is up 1 percent this month, taking this year’s gain to 6.2 percent. Gold touched a two-week low of $925.90 on July 29. The dollar fell 0.3 percent against a basket of six major currencies and was trading at $1.4128 against the euro compared with $1.4075 yesterday.
Gold may decline next week, heading for the “summer doldrum lows” in the Northern Hemisphere, after investors sold more metal, a survey showed. Thirteen of 22 traders, investors and analysts surveyed by Bloomberg News, or 59 percent, said bullion would fall next week. Six forecast higher prices and three were neutral. Redemptions of gold exchange-traded products in July are set to be the second largest since inception of the first physical gold product in 2003, according to a report from Barclays Capital. Holdings in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, stood at 1,072.87 metric tons as of July 30, according to figures on the company’s Web site. Among other precious metals for immediate delivery, silver was up 0.9 percent at $13.60 an ounce, platinum added 0.5 percent to $1,192.50 an ounce and palladium was little changed at $259.